31^ 





STATE REFORMS IN LOUISIANA, 



WHAT THE REPCBLICAN PARTY HAVE ACCOMPLISHED 



WHAT THEY STILL PROPOSE TO DO. 



Coi'i-esponclence bet-Nveen the Pi'opert.v Holdevs' ITiii«:>ri 

f)f N^*^\v Or-leans and. the Reiinblican Stfite 

CeiitT-al Committee. 












STATE REFORMS IN LOUISIANA. 



v;,^\ CORRESPONDENCE BETWEEN THE PROPERTY HOLDERS' UNION OF NEW ORLEANS 
AND THE REPUBLICAN STATE CENTRAL COMMITTEE. 



To the State Central Executive Committee, Re- 
publican Party of Louisiana: 

The uudereigned committee from the 
central council of the Property Holders' 
Union (if the city of New Orleans, b^g to 
solicit your o.-operation, and that of the 
people wboui you represent, in advocating 
such lejjislatiou as will bring relief to the 
tax-riddeu owners of real estate in New 
Orleans. 

Our organization is non-partisan in its 
character, and our object is to secure the 
asrtirttauce of the n-presentdtives of all poli- 
tical parties in the State to adopt means of 
reform which will relieve the real estate in- 
terest from its present alarming depression 
and impending ruin. 

We very respectfully submit for your 
consideration: 

1. The limitation of the State tax to one- 
half of one per centum, and the city tax to 
one per centum, on the marketable cash 
valuation. 

2. Revision of the assessment laws, so 
that there shall be but one assessment every 
live years; that the courts of the State, and 
not the assessors, shall 1)6 the final judges 
of the assessable value ot property. 

3. To prohibit the loan of the credit of 
the State or city for any purpose whatever. 

4 To reduce the salaries of the city and 
State officials, and the abolishment of un- 
necessary offices. 

5 Relief of the delinquent taxpa\er8 and 
for p-rsons whose pr.'perty has been sold 
for i-ixes. 

6. To allow the payment of taxes. State 
and city, by installments. 

C. H TEBAULT, M. D., 
Chairman Confert-uon Committee, Property 

Holders' Centra! Council. 
L J HIGBY. 

D. P. SCANLAN. 
JOHN HUGHES, 
J D. HILL. 

W. B. KOONTZ 

Rooms St.\te Cextral Executitk Comsiitiee, ) 

RepubUfan Party, .stivte of Louisiana, > 

New Orleans, November 26, lliTS. S 

At a meeting of the committee this day 
the following rcfolutioiis were adopted: 

Resolved, That the object announced in 
the communication received Irom the com- 
mittee of the C'-nrral Council of the Prop- 
erty Holders' Union meri s and commands 
our unqualified approval. 

Resolved, That priictically to assure that 
end the union is requested to submit to this 
committee, at the earliest date, drafts of 
bills tending to the relief proposed. 



Resolved, That this request finds especial 
force in the fact that the committee fails to 
discover by what method the proposed lim- 
itations to taxation can be made to sutfice 
the interest on the public debt and the 
maintenance of the schools, levees and 
i!;overnment of the State. 

S. B. PACKARD, President. 
A true copy: 

J. R G. Pitkin. 

Corresponding Secretary. 

New Orleans, November 30, 1875. 

C. H. Tebault, Chairman Conference Committee, 
Property Holders' Union: 

Sir — I have the honor to transmit inelosed 
the resolutions of the State Central Ex- 
ecutive Committee of the Republican party 
of Louisiana, in response to the communica- 
tion presented by the committee of which 
you are chairman. 

It has, at all times, been the desire of the 
Republican party in Louisiana to accom- 
plish the reforms rolerred to in your com- 
munication, in so far as possible and practi- 
cable and consistent with public credit and 
the eflicient collection of the revenue. 

The present Republican administration 
came into power pledged to eftect, as far 
as possible, the reduction of the public 
debt and the relief of the citizen from the 
burdens of which you complain. All un- 
prejudiced minds must admit that the pre^- 
ent administration has, der-pite opposnioQ, 
fultiiled the pi dges ot the party hv which 
it was elected. Ttie Legislature formerly 
had unlimited power ot taxation. A tax of 
twenty-one anil one-litlf mills bore on ah 
property in the State. Through the un- 
aided efl'orts of the Republican party and 
against the opposition of the Democrats a 
constitutinniil amendment now limits the 
lew ot State t^xes to fourteen and one-half 
mills for all Stiite purposes. 

The Legisliiture liad power to create a 
bonded debt to the extent of $25,000 000; it 
is now limited to $15,000,000. The Demo- 
crats, as a party, opposed the constitutional 
amendment by which this reform was ef- 
fected. 

The State was, at the commencement of 
the present administration, burdened with 
an interest-bearing debt of nearly $22,000,000 
and a floating debt of nearly $3,000,000, be- 
sides a very large contingent debt. The 
floating debt has been reduced more than 
one-half; the bonded debt has been at this 
date redueed $5,000,000, and when the pro- 
visions of the tunding bill, fortified by a 
constitutional amendment recently adopted, 



STATE BEFOBMS IN LOUISIANA. 



are fully carried out, the interest paying 
debt will be reduced fr>m nearly $-22,000,000 
to an amount considerablv within the con- 
stituiional limitation ot $15,000,000 The 
contingent debt has been extinguithed by 
the funding bill. 

Prior to 1873 the Legislature possessed 
unlimited power to make extravagant ap- 
propriations. There was practically no 
limit to expenditure in carrying on the 
State government. During the adminittra- 
tion ot Governor Kellogtf, oy the act of a 
Republican Legislature, the expenditure 
lor all purposes has been limited to the ac- 
tual revenue from taxation. At the fixed 
rate of fourteen and one-half mills, increased 
taxation and an ever increasing floating 
debt have been rendertid impossible by con 
stitutional enactment. 

Prior to the administration of Governor 
Kellogg, the annual expense of administer- 
ing the government, exclusive ot iinterest, 
schools and levee dues, exceeded $2,000,000. 
Economy has reduced the annual expense 
to leas than $1,000,000. 

The city of New Orleans, with a bonded 
debt of $23,000,000, and unlimited power to 
contract a floating debt, has by amendment 
to the constitution been prohibited from 
imposing any additional burden upon tho 
people. 

I "submit that the Republican party, dur- 
ing the present administration, has given 
earnest of its desire and intention to admin- 
ter the government with economy, and to 
fulfill its pledges. 

In accomplishing these reforms, has the 
Republican party in Louisiana had the aid 
and countenance of any of the citizens of the 
State outside of its own ranks? This ques- 
tion finds its answer in the history of the 
last three years; a history of unreasonable 
and acrimonious opposition t» all reform 
by that class which claims to be most 
heavily bur'iened by taxation. 

When a Republican Legislatiiie submitted 
to the vote of the people amendments to 
the constitution limiting taxation to four 
teen and one-half mills, restricting the debt 
of the State to fifteen millions, limiting the 
power of any Legislature to expenditures 
greater than the State revenue, an amend- 
ment providing for the reduction of the 
State debt from $22,000,000 to $15,000,000, 
taking from the government of the city of 
New Orleans, notorious for reckless and 
extravagant misgovernment, the power fur- 
ther to burden the property within its 
limits with debt, did the party receive any 
aid or countenance from its Democratic op- 
ponents? Democrats were invited to aid 
m all of these reforms, but their 
party mandates at once went foith 
commanding the rank and file of the Demo- 
cratic party to vote against all of the pro- 
posed reforms and constitutional amend- 
ments. The record of the last election de- 
monstrates that the command was obeyed. 
The reforms were efl'ected; the constitu- 
tional amendments were adopted by a strict 
Republican party vote. This, too, in a 
community so reckless of public and private 
credit that the cry of absolute repudition 
ot the public debt was popular with the 
Democrats. When the development of the 



resources of the State and speedy reduction 
of the public debt required unimpaired 
faith in the State government, the Demo- 
cratic party, through its counsels, commit- 
tees and press, joined in a deliberate and 
continued efiort to injure the credit and em- 
barrass the operation of the government in 
effecting these reforms. 

When reform demanded stable govern- 
ment, public men. claiming and asserting 
themselves good citizens and reformer?, ex- 
pended tbeir means and exerted their 
powerful personal influence to create sedi- 
tion, provoke slaughter and bloodshed, and 
send abroad the impression that the gov- 
ernment of Mexico is more stable than the 
government of Louisiana, and that neither 
property nor life was secure within our 
biiundaries. They turned emigration from 
our borders, frightened capital from our 
midst, injured our reputation as a State, 
and drove our trade into other channels 
and to other ports. 

The Republican party in Louisiana does 
not underrate the obstacles and barriers 
which the Democratic party has placed in 
its pathway to reform and retrenchment; 
neither does it underestimate th** opposition 
which it must encounter at Democratic 
hands in the future, and will gladly wel- 
come and acknowledge all honest counte- 
nance and aid in the accomplishment of its 
purpose further to reduce the debt of the 
State and decrease the expense of its gov- 
ernment. 

Permanent good government can only re- 
sult irom a condition of public opinion 
favorable to peace and good order. Economy 
in the administration of government will 
follow when all men and all parties shall 
demand it, and shall cease to discourage re- 
form because that reform is suggested ot 
attempted by an adverse party. 

This condition does not seem to exist in 
the State at the present time. Your com- 
mittee can find proof and illustration within 
its own organization. A member of your 
union was a candidate for Administrator at 
the last municipal election. He publicly 
announced that if elected he would serve 
without pay. No one doubted his fitness or 
competency for the position. He was a 
large property holder, who brought from 
the West and expended a fortune in an en- 
deavor to extend the trade and commerce 
of the city. The grain elevator is the mon- 
ument of his enterprise and public spirit. 

Had the voters in the city really desired 
economy he would have been unanimously 
elected. Yet he was not elected, though he 
received the 14,000 Republican votes oast 
in the city. Not a Democratic vote was cast 
in favor of this property holder, pledged to 
serve without salary. His opponent, the 
Democratic nominee, received the party 
vote, was elected, and draws his salary. It 
aypears that missionary labor is required in 
this city before a majority of the voters are 
ripe for reform. 

Public sentiment must be educated fo 
forego its preference for indiscriminate 
abuse of party organization and the slan- 
der of individuals, and to reserve denuncia- 
tion for wrong-doers. Reform wil I then be 
speedy and efiectual. 



STATE EEFOBMS IN LOUISIANA. 



The public was informed by tbe Demo- 
cratic press and leaders that economy and 
retrenchment would f. How a Democratic 
majority in the present House of Repre- 
sentatives. The result was extravagance. 
An extra session of ten days was called 
last April to adjust our political diflfe!- 
ences, and thus gave a Democratic House 
an opportunity to exhibit its intention and 
capacity for reform. Examine the record 
of that session. The House of Representa- 
tives originated and passed an appropria- 
tion bill expeuding $117,000 of the public 
money as the expense of that same ten 
days' session, and with eccentric patriotism 
and disinterestedness it was provided by tbe 
same act that this large sum should be paid 
in preference to theclaims of older creditors. 

Our community is not possessed of a sur- 
plus of capita), and for purposes of trade 
now, and for some time to come, must rely 
largely on private credit for the operation 
of commerce. Impair public credit and 
private credit at once feels the shook; trade 
is crippled and curtailed. 

The financial history of this State is not 
consoling; public sentiment has been neither 
consistent nor discriminating. The ante- 
bellum bonded debt exceeded ten millions. 
The Democratic Legislature charged with 
the couduct of the attairs of the State, from 
the close of the late war until reconstruc- 
tion, increased the bonded debt to over 
$14,000,000, and appropriated $13,000,000 in 
excess of even the estimated revenues of 
State. The immediate predecessor of Gov- 
ernor Kellogg found the State with a dim 
inisbed assessment roll and undiminished 
expense — likewise this legacy of debt out- 
standing. During that administration the 
bonded debt increased to nearly $22,000,000. 
This administration was, in the opin- 
ion of the Republican party, extravar 
gant. As a party it sought to remove hiui 
from power as au enemy both of the party 
and of the State. As soon as he was cast 
forth by the Republicans he fled to the 
camp of the opposition and became their 
leader. Not only were his misdemeanors 
and extravagances condoned, not only did 
he receive votes from Democratic and so- 
called Reform legislators for a seat -n the 
federal Senate, but the popular vote cast 
lor McEnery was to the practical end of 
continuing the very policy which for three 
years the Democracy had denounced. Gov- 
ernor Kellogg, without aid outside of hia 
party, has demonstrated the possibility of 
reducing the bonded debt to the limit 
reached at the date of reconstruction. This 
reduction is to-day in rapid progress, and 
will soon be accomplished, although the tax 
levy has been reduced from twenty-one and 
one-half to fourteen and one-halt mills. 

When men who claim to be reformers and 
model citizens shall cease to menace the 
public peace, to aid and encourage irre- 
sponsible armed constituents publicly to 
boast that they have organizea and com 
manded armed bodies of reckless men, 
who at their beck can and will deluge 
anew the State with blood; when the po- 
litical opinion of a Republican shall not 
be deemed adequate provocation for mur- 
der and violence: when men who claim 



identification with tbe business and cap- 
ital in our liuiits shall cease to justify 
the impression abroad, that as a commu- 
nity we care nothing for good government, 
public credit or freedom from domestic 
violence; when the immigrant, despite the 
too prevaleu''. terror which, outside of the 
State, attaches to our climate brings into 
our midrtt and adds to our material wealth; 
his capital, his enterprise and the strength 
of his righi arm shall cease to be met at our 
borders with opprobrious epithets and be 
biiven otF by menaces, a material apprecia- 
tion of values, an exiiansion of commerce, 
a steadfast confidence, and none bur the 
wholesome rivalries that should animate a 
people living in Christian amity, are certain 
to be realized by Louisiana. You will doubt- 
less share with me in the persua^iion that 
nothing can be so honorable in a man who 
enjoys the protection of the laws as to for- 
get the complexion of a fellow-citizen in 
the title which he as fully holds to that 
protection. 

The Central Executive Committee has re- 
quested your organization to submit the 
drafts ot bills embodying in a practical 
form your plan of retrenchment. 

Reduction of taxation below the present 
rate of ourteen and one-half mills can be 
attained, first, by an increased taxable 
value of property in the State. 

The grand total of assessable taxpaying 
property can be increased by a much needed 
reform in the manner of arriving at its val- 
uation. 

Under the present laws there is an entire 
independence of all central authority on the 
part of parish assessment boards of equal- 
ization, which consist each of the sheriff, 
clerk of court and recorder. Parishes may 
and do avoid a fair share of the burdens of 
Stite taxation by the imperfect method of 
valuation of the property returned to the 
State. Lands and personal property in 
some parishes are returned at their full 
value, while in others they are returned at 
less than oue-half. Could a remedy be had 
for this it would be found that a larger 
amount of assessable property would be re- 
turned. Other States have provided State 
boards of equalization, with power over 
the local boards. Should a State board of 
this kind be created it should consist of 
experts, and it should be made their duty 
to examine the valuation of the property ot 
each parish as fixed by the local boards, 
once in five years visiting the parishes for 
that purpose. 

Valuations, when once so examined and 
approved by the State board should remain 
for five years without alteration, with pow- 
er in the local boards to correct each year 
in case of destruction or improvement or of 
change of ownership. 

It is further suggested whether property 
belonging to religious and other associations, 
not dedicated to or used for strictly church 
or educational purposes, and from which 
rents and revenues are received, should not 
be taxed as other property. There is in 
this city alone property of the value of 
several millions exempted from taxation, 
yet in no manner used for church or educa- 
tional purposes. 



STATE EJEFOBMS IN LOUISIANA. 



Secondly — Ther«^ must be increa-ed eeon- 
omy in the adniiuifltrntioii of all brauches 
and departments of the Stare ^''^eriiineDt 
While, as 1 Lave indicated, the exp(Mir*e i)f 
goyerniuent has be< n reduced to om -tialf 
of its former limit, still further reductions 
and economy are pi'ssibl^'. 

The present s.vstem of assesHtuent and 
collection is too exp>-usive. The remedy 
lies in legislation. It is sn.gested that the 
law be S'l changed as to provide thao iu the 
city of New Orleans, insiend of seven Stat" 
assessors with largw salaricF, one assessiir, 
with a salriry say of $5000, and with such 
clerical force as may be necessary; also as- 
sistant assessors — one for each assesi^ment 
district — *o be paid for the time actually 
engatied in listing property. A limit of 
compensation to be fixed. Also to provide 
a board of equalization in the city of New 
Orleans of five, consisting say of the AudiJor 
and Treasurer of the State, the Mayor of 
the city and one administrator — say of as- 
sessments — and one exiiert in real estate, to 
be appointed by the Governor, and to be 
paid for the time while actually employed. 
This board to have the power usually given 
to such boards to hear and decide all com- 
plaints and pppeals from the assessors' 
valuation, during say thiity dajs'exiiosure 
of the assessment rolls. A copy of this as- 
sessDjent roll might be used Oy the city, in 
which case rhe department of assessments 
could be abolished. The cost of assessment. 
by this plan would tot exceed one-fourth 
the present cost. 

The expense of collecting the State taxes 
can be materially reduced hy proper legis- 
lation. As to taxes payable in the city of 
New Orleans, the assessment roll can be 
placed in the hands of the State Auditor, 
who, upon applicaiion of the taxpayer, will 
furnish a certificate of amount due, this 
certificate to be presented to the State 
Treasurer and the money paid directly into 
the treasury. A slight increase of the pres- 
ent clerical force in the Auditor's and 



Treasurer's offices will enable them to dis- 
charge this ailditional duty. This will save 
to the State the present exorbitant commis- 
sions paid 'o the collectors. In all the par- 
ishes, except the parish of Orleans, the 
peicentage comminKion for assessing and 
collecting Slate and parish taxes to be so 
rated as not to yield a greater oorapeiisa- 
tioii to the collector than $3000 per annum, 
and for the necessary clerk hire. 

This letter suggests a few reforms which, . 
if carried into effect, will greatly reduce 
the expenses of the State government. By 
proper legislation and economy in the ad- 
ministration of the iruuDoipal ofSces, the 
expense of carr\ir)gon the city government 
can 1)6 greatly reduced. I submit, then, re- 
store order and confidence and you quicken 
investments in our productive lands and 
build up with our labor the waste places of 
the Start ; then the increased value of the 
taxable property in five years, with the pro- 
posed one half of one per cent maximum 
taxati* u for State purposes, and wiih an 
even system of equitable assessment 
throughout our borders, will yield a suffi- 
cient revenue to provide for the payment of 
the interest and principal at maturity of 
the public debt, maintain the levees, con- 
tinue and strengthen the public schools, and, 
in fine, provide the means lor supporting 
the State government in ail its functions. 

Iq conclusion, I have to remark that the 
CO operation for which you ask an the hands 
of the Republican State Central Committee 
in behalf of the taxpayer, will, I am per- 
suaded^ be readily accorded by those with 
whom 1 am associated, and it is my hearty 
hope that a temper may be exhibited by 
the Democrats iu our Legislature as high- 
minded as is the Property Holders' Uuioa 
which you announce to be ''nou-partisau" 
in its character. 

Very respectfully your obedient servant. 
S. B. PACKARD, 
President State Central Committee. 



LIBRARY OF CONGRESS 



014 544 752 5 f^* 



LIBRARY OF CONGRESS 



014 544 752 5 



